IDBI Bank reports stellar growth of 53% YoY in Q3 PAT, net interest income spikes by 31% YoY

21 Jan 2022 , 02:05 PM

IDBI Bank Ltd. announced its financial results for the quarter ending December 2021 and has reported substantial growth in its profits and earnings.

The Bank’s share was trading 1.48% lower today at Rs 49.80 against the previous closing price of Rs 50.55. It touched an intraday high and low of Rs 50.95 and Rs 49.65 respectively in today’s trade.

The company’s net profit stood at Rs 578 crore for Q3 FY’22, registering a growth of 53% against Rs 378 crores for the previous corresponding quarter. While its PBT improved by 15% at Rs 966 crore for December 2021 quarter, as against Rs 843 crore for the previous corresponding quarter.

IDBI also reported an improvement of 3% YoY in its operating profit for Q3 FY’22 standing at Rs 1,768 crore against Rs 1,711 crore for Q3-2021.

The company’s Net Interest income (NII) for Q3 FY’22 stood at Rs 2,383 crore against Rs 1,817 crore for Q3 FY’21, showing an improvement of 31% YoY. While it reported an improvement of 101 bps to 3.88% for Q3 FY’22 against 2.87% for the previous corresponding quarter.

The company was able to reduce its Cost Of Deposits by 68 bps to 3.50% for Q3 FY’22 against 4.18% for the quarter ending December 2020. While the company reduced its Cost Of Funds by 60 bps to 3.79% for the quarter under consideration as compared to 4.39% for the previous corresponding quarter.

The company’s ROE stands at 12.66% for Q3 FY’22, showing an improvement of 3% YoY.

It also reported significant growth of 11% YoY in its CASA as they inched up to Rs 1,21,738 crore as of December 31, 2021, as against Rs1,09,880 crore as of December 31, 2020. CASA managed to improve its share in total deposits to 54.69% for Q3 FY-22 against 48.97% for Q3 FY-21, reflecting a growth of 572 bps YoY.

The company also reported improvement in its Gross NPA ratio from 23.52% for December 2020 quarter to 20.56% for December 2021 quarter. Whereas Gross NPA for the July-September’21 quarter stood at 21.85%.

Company’s Net NPA ratio also improved to 1.70% for December 2021 quarter as against 1.94% (2.75% with proforma slippages) as of December 31, 2020, and 1.71% for the quarter ending September 2021.

The company improved its Provision Coverage Ratio to 97.10% for the current quarter on side 97.08% for the previous corresponding quarter. While it stood at 97.27% as of September 30, 2021.